Boeing (BA, Financial) shares dropped more than 1.5% in pre-market trading, priced at $152.29. S&P has placed Boeing on a negative ratings watch, indicating a potential downgrade to junk status. The current rating stands at BBB- with a negative outlook.
S&P projects that ongoing strikes are costing Boeing $1 billion each month. If strikes conclude by the fourth quarter, Boeing is anticipated to burn through $10 billion in cash by 2024.
Additionally, sources reveal that negotiations between Boeing and the IAM union, facilitated by a federal mediator, have collapsed. The talks centered around a 30% wage increase and improved retirement benefits. Boeing has withdrawn its offer and sees no benefit in further negotiations.
